For some, ‘location, location, location’ means ‘schools, schools, schools.
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For some, ‘location, location, location’ means ‘schools, schools, schools.’ Here’s how school districts play into the purchase process
For some, ‘location, location, location’ means ‘schools, schools, schools.’ Here’s how school districts play into the purchase process
What makes some homes sell quickly? Often, it’s not the amenities of the home itself; it’s the school district in which the property stands.
“Some families look for a school as much as for a home,” says David Kennedy, owner of Exclusive Buyers Realty, San Antonio.
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Given that demand for homes in some districts is strong, it’s no surprise that home values and schools’ reputations are linked.
Michael Sklarz, president of Collateral Analytics, a Honolulu firm, conducted an analysis about two years ago that found “there is a good correlation with how home prices fare and school test scores.”
Sklarz analyzed school test scores and prices of homes around the country and found that top-performing schools push home prices up. These home values have been more resistant to big drops during economic downturns. But, Sklarz and other experts stress that the school/real estate link is more complex than it appears.
“There is a question as to which drives what,” Sklarz says. “These areas [with high-performing schools] tend to be wealthier, and the homeowners there were more insulated from the subprime mortgage debacle that drove prices down.”
Bryan Hassel, co-director of Public Impact, an education non-profit, adds another caveat: Dazzling school scores don’t necessarily dictate that it’s the best place for your child.
Here, a quick study guide on the intersection of real estate and education for buyers, sellers and parents:
Buying Season and the School Calendar
“I tell sellers that you need to get your home under contract by the end of July; that is the window of opportunity,” says Cheryl Bare of Century 21 Comstock Earnest, Waldorf, Md.
Families like to be settled by August, ready for school, she says.
Schools and Value-Conscious Buyers
Top-rated schools boost property values more often in affluent suburban and urban neighborhoods, Sklarz says.
“But some outlying suburbs with good test scores have seen big price drops for whatever reasons and now could be an opportunity for investors,” he adds.
Indeed, anyone wanting to see prices steady or rise should consider schools, Sklarz says.
Why Agents Tread Carefully
If schools are important, buyers may wonder, “Why isn’t my real estate agent talking about them?”
For one thing, explains Walter Molony, spokesman for the National Association of Realtors, it may be illegal for agents to offer opinions. “Regulations vary by state,” he says, “but discussing the ethnic makeup of a school would appear to violate fair housing laws.”
To not run afoul of any law, many agents say they refer their clients to the many websites reporting school data. Even when touting a school in a listing, Mary Ann Hebert, president-elect of the Connecticut Association of Realtors, says she uses verbiage like “award-winning school,” and then links the listing to the school district’s own site, where viewers can see test scores and other information.
A Personal Selection
Schools with the top scores may not be right for your child. Visit a school first, observing things like how the teachers interact with the students, and what programs are available, Hassel suggests.
Lori Collins Burgan, author of “Moving With Kids” (Harvard Common Press, 2007), agrees: “During one of our moves, my husband and I were within hours of making an offer on a ‘dream’ house when we visited the school. When the school didn’t feel like the right fit for our children, we had to begin our housing search over.”
Since the top-scoring schools also correlate with high home prices, families with a limited budget could strategize to look for a school in an area with more affordable homes, says David Brasington, associate professor of economics at the University of Cincinnati. His research shows that other factors, like parental education levels and involvement, are also important to a child’s education. He points out that some desirable schools may be in less expensive areas, too.
